EUR/JPY retraces its recent losses registered in the previous session, trading around 168.80 during the European hours on Wednesday. According to the technical analysis of the daily chart, the currency cross remains within the ascending channel pattern, strengthening the bullish bias.
Euro (EUR) is unlikely to rise much further against US Dollar (USD), it is more likely to trade in a range of 1.1575/1.1645. In the longer run, EUR is expected to continue to trade in a range; given the increase in volatility, it is now likely to trade between 1.1480 and 1.1660.
On Wednesday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1668 as compared to the previous day's fix of 7.1656 and 7.1709 Reuters estimate.